"If I'm the leader of the Labor Party, I don't want Luke Foley in my ranks."

Mr Foley quit as leader of the opposition on Thursday night after Ms Raper released a statement claiming he put his hand inside her underwear at a 2016 parliamentary Christmas after-party in Sydney's CBD.

Mr Foley vehemently denied the allegations when he announced his resignation, and said he planned to launch defamation proceedings in the Federal Court.

Luke Foley, flanked by Michael Daley, making a transport policy announcement on Thursday morning, before resigning in the evening.Credit:Janie Barrett

Ms Raper gave her version of the alleged drunken behaviour after Liberal MP David Elliott raised the issue in the NSW Parliament under parliamentary privilege last month.

"He stood next to me. He put his hand through a gap in the back of my dress and inside my underpants. He rested his hand on my buttocks. I completely froze," she alleged.

Mr Daley on Friday said he was "very unhappy" with his former leader's press conference and threw his support behind Ms Raper.

"We're all thinking of Ashleigh," he told reporters outside his home.

"She did the right thing, she did the brave thing. We're all thinking of her. She's the most important person at the moment."

He said politics in NSW had reached a "low ebb" and called on Premier Gladys Berejiklian to join him in saying Parliament needed to raise its standards.